Australian Taxation Law Analysis
Added on 2020-05-16
16 Pages4406 Words118 Views
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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
1Table of ContentsAnswer to Question 1:................................................................................................................2Answer to requirement 1:...........................................................................................................2Answer to requirement 2:...........................................................................................................6Answer to Question 2:................................................................................................................7Answer to Requirement 1:.........................................................................................................7Answer to requirement 2:...........................................................................................................9Reference List:.........................................................................................................................13
2Answer to Question 1:Answer to requirement 1:The present case study is based on the ascertainemt of the residential status of Minhrelating to the income tax purpose. Additionally, the case study will be determining theresidential status effecting the assessment of income derived from Malaysian and the incomefrom investment in Australia. The case study of Minh opens with the station the situation that the Minh was born inMalaysia and carried out her business activities. In the later part of June 2016, she wasgranted with the Visa of working in Australia and she arrived with her family with theprobable of intention of eventually migrating and starting a business. An instance was noticedwhere Minh bought a home in Melbourne and resided with her partner and children with herchildren being enrolled in the local school of Melbourne. As the general jurisdictional rule stated under “section 6-5 (2), (6-10 (4) of the ITAA1997” residents are generally assessed on based on the ordinary income and statutory incomederived from all the sources (Woellner et al. 2016). Accordingly as stated under “section 6-5(3) (a) and 6-10 (5) (a) of the ITAA 1997” a foreign resident or non-resident of Australia areassessed based on their ordinary and statutory income generated from the Australian sources. According to the definition stated under the “section 995-1 of the ITAA 1997” and under“section 6-(1) of the ITAA 1997” a resident or Australian resident for taxation purposerepresents an individual residing in Australia and comprises of the person that has thedomicile in Australia (Barkoczy 2016). An Australian resident represent a resident that hasbeen living in Australia either constantly or intermittently for more than half of the incomeyear unless the officer of taxation is content that the persons usual place of residence is out ofAustralia and has no intent of taking up the residence in Australia (Vann 2016). In order to
3determine the domiciliary position of Minh three alternative test will be conducted as towhether Minh will be treated as Australian resident for taxation purpose; these alternativestest includes a.Residency test according to ordinary concepts b.Domicile testc.The 183 day test Resides Test according to ordinary concepts:The first test that is conducted in determining the residential status of an individual iswhether an individual “Resides” in Australia (Barkoczy 2017). On satisfying, the test there isno further need of conducting any further test for assessing the domiciliary position of anindividual. On satisfying the Resides test, the person will be regarded as the resident ofAustralia for the purpose of tax. The term Reside represent to live permanently or for aconsiderable period. The question relating to fact and degree is explained in the case of“Federal Commissioner of Taxation v Miller (1946)” where the question of fact and extentis reliant on the circumstances of case (Tan, Braithwaite and Reinhar 2016). The Reside Testtakes into the consideration the quality and the character of a person’s actions at the timewhen the person was present in Australia. Additionally “taxation ruling of TR 98/17” indetermining the residential status of an individual under the Resides Test takes into theaccount; a.The taxpayers usual purpose and intention of presence in Australiab.The business and family ties of the taxpayer in Australia c.Looking after and location of the taxpayer’s assets. d.The taxpayers communal and physical arrangement
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